GuShiio.com ① Qunxing Toys made the list again today, with a total net sales of 407 million yuan for seats on the list. The company disclosed its major asset reorganization plan on the evening of February 26, and the target company involved in the field of artificial intelligence.
② Previously, Qunxing Toys had initiated four major asset restructurings, all involving popular tracks such as new energy, but all ended without success. Combined with past capital operation history, it remains to be seen how this reorganization will end.
Financial Union, March 5 (Reporter Xu Xuecheng)Today, Qunxing Toys (002575.SZ) made the Dragon and Tiger List for the third time in 5 trading days. After disclosing its major asset reorganization plan on the evening of February 26, Qunxing Toys had a wave of three consecutive boards, but it encountered a daily limit today. Behind such ups and downs, the reorganization of this “monster stock” that has been famous for a long time in the capital market has also been re-examined.
This reorganization is the fifth reorganization initiated by Qunxing Toys since its launch. Similar to this time in the field of artificial intelligence, Qunxing Toys ‘previous reorganizations all involved popular tracks; what is strange is that the previous reorganizations of Qunxing Toys have not only stirred up a lot of waves in the secondary market, but have all failed. Looking at this reorganization again, Qunxing Toys ‘choice of cash payment method gives some consideration.
A senior investor interviewed believes that this method can simplify the process and speed up the process, which is popular with the secondary market. However, as of the end of the third quarter of last year, Qunxing Toys ‘book capital balance was only more than 27 million yuan. Combined with its recent strange secondary market performance and restructuring “resume”, it remains to be seen how this reorganization will end.
Third time on the list of dragons and tigers and replans to reorganize directly target AI assets
In the transaction disclosure information released by the Shenzhen Stock Exchange today, Qunxing Toys has been on the Dragon and Tiger List for the second consecutive day due to a daily turnover rate of 40.39% and a daily price decline deviation of-10.41%. It is also the third time in nearly 5 trading days.
Trading data released by the Dragon and Tiger List showed that the total purchase of seats on the list throughout the day was 196 million yuan, the total sales were 603 million yuan, and the total net sales were 407 million yuan.
Among them, China Galaxy Securities bought 45.5827 million yuan in Beijing Zhongguancun Street, Guotai Junan Securities Shanghai Jiangsu Road Sales Department bought 39.1979 million yuan, and CITIC Securities Shanghai Kaibin Road Sales Department bought 38.76 million yuan. CITIC Construction Investment Securities ‘Beijing Liuxiang Road Sales Department sold 327 million yuan, Guosheng Securities Shenyang Shifu Road Sales Department sold 104 million yuan, and institutional seats sold 46.7952 million yuan.
On March 4, after harvesting three consecutive boards, Qunxing Toys entered the list due to a daily turnover rate of 43.44%. The total net purchase of seats on the list that day was 44.2307 million yuan, of which the net purchase of Shenyang Shifu Road Securities Business Department of Guosheng Securities Co., Ltd. was 114 million yuan.
On February 28, Qunxing Toys had a daily limit for the second consecutive day after disclosing its reorganization plan. On the same day, Qunxing Toys made the list for the first time in nearly five trading days due to the cumulative deviation of the price increase of 24.43% from February 27 to 28.
According to Wind statistics, in the five trading days after the reorganization plan was disclosed, Qunxing Toys ‘cumulative increase was 23.88%. During the period, the total transaction volume was 6.437 billion yuan, the interval turnover rate was 87.46%, and the average daily turnover rate was as high as 17.49%.
Qunxing Toys issued a “Prompt Announcement on Planning for Major Asset Reorganization” on the evening of February 26, stating that it had signed an “Equity Acquisition Framework Agreement” with shareholders of Hangzhou Tiankuan Technology Co., Ltd.(hereinafter referred to as “Tiankuan Technology), and planned to use cash to acquire no less than 51% of the total equity held by its shareholders. After the completion of this transaction, Tiankuan Technology will become a holding subsidiary of the listed company, and this acquisition is expected to constitute a major asset reorganization.
Data shows that Tiankuan Technology’s main business covers the construction and operation of artificial intelligence computing centers, digital transformation solutions, and digital intelligence security. In 2024, Tiankuan Technology’s operating revenue will account for approximately 58%, 27% and 15% of the computing center construction and operation, digital services and digital intelligence security fields.
Artificial intelligence is a hot target asset for current mergers and acquisitions. Qunxing Toys also mentioned in the announcement on the same day that “the company will enter the intelligent computing power business field in 2024, and this business has certain synergy with the main business of the target company.” The wave of board exchanges that started the day after the announcement was released may have been expected, but it only lasted for four trading days and then turned sharply. Many investors bluntly said in the community that this wave of operations was called a “one-word soul-cutting knife.”
How can I gain trust again when I have a poor resume in mergers and acquisitions?
Today’s collapse of Qunxing Toys has not only attracted the anger of small and medium investors, but also included a re-examination of its past mergers and acquisitions.
According to statistics from Cailian reporters, this reorganization should be the fifth reorganization initiated by Qunxing Toys since it was launched in 2011. At the end of February 2014, Qunxing Toys planned its first major asset reorganization since its listing. The main business of the target company is mobile online games. The reorganization was rejected in March 2015.
Less than three months later, Qunxing Toys again planned a major asset reorganization, with the target being Sichuan Sanzhou Sichuan Chemical Machinery Nuclear Energy Equipment Manufacturing Co., Ltd. The plan was terminated in August 2016 because the superior authorities of the target company believed that “the transaction timing is not ripe.”
Almost every major asset reorganization is based on Qunxing Toys ‘ambition to focus on the “outlet” of the capital market and enter the popular track. However, judging from the results, in addition to “one wave has not settled down, another wave has arisen” in the secondary market. In addition, these reorganization resumes are really hard to show.
Looking back at this major asset reorganization, Qunxing Toys still focuses on artificial intelligence, a “hot spot” in the M & A market. According to the information disclosed so far, the valuation of the target company Tiankuan Technology may be more than 800 million yuan, which means that Qunxing Toys may need to spend at least 400 million yuan in capital. However, Qunxing Toys, whose main business has been sluggish in recent years, is really short of money. Data as of the end of the third quarter of 2024 shows that the book monetary capital of Qunxing Toys is only a mere 27 million yuan, which is far from the funds needed for mergers and acquisitions.
However, even in such a “difficult” situation, Qunxing Toys still chose to pay in cash, which may have some considerations. “Cash payment is mainly considered because it does not involve stock issuance and the review process is relatively simple. In addition, the entire process will be relatively fast. If it involves a stock issue, it will take at least a year. If it is cash payment, it may be completed in half a year if it is fast,”said a senior investor interviewed. In his view, choosing cash payment means expecting faster cash, and the secondary market is also very happy to see it.
However, the person also pointed out that cash payments also carry certain risks. If a listed company is not very rich in funds, it will need to bear certain debt pressure. Or the subsequent performance of the target fails to meet expectations, shareholders will also suffer certain losses.
According to its disclosure, in order to avoid risks, listed companies usually add some additional terms to transactions. For example, shareholders of the target company are required to purchase a certain amount of shares of the listed company to achieve bundling of the interests of both parties. In addition, listed companies often issue additional shares after the merger is completed. At this time, the company’s market value is generally at a high position. The funds raised by additional issuance can repay the merger loan, and at the same time, the equity of major shareholders will not be excessively diluted.
Based on this analysis, Qunxing Toys ‘”good intentions” to release good benefits to the secondary market are obvious. However, since Zhang Jincheng, known as the “King of Shell Speculators”, entered the game, Qunxing Toys’s multiple capital operations have been repeatedly questioned (Qunxing Toys is also planning to issue additional shares, and Zhang Jincheng is expected to become the actual controller). In addition, several previous mergers and acquisitions of hot assets have always “only blossomed without results”. It remains to be seen how this reorganization will end and how Qunxing toys will regain the trust of investors.
